EUR/CHF Outlook: Slightly weaker, but likely to move sideways as the rate is close to its recent average and lacks a clear driver.
Key drivers:
• The European Central Bank (ECB) is expected to maintain a neutral monetary policy, while the Swiss National Bank (SNB) has kept its policy rate at 0%, resulting in limited interest rate differentials that could affect the EUR/CHF exchange rate.
• Oil prices have risen notably, hovering above their recent average, which can support the euro given its correlation with energy prices, but may not directly influence the Swiss franc.
• The Eurozone's inflation trends reveal a projected decrease, suggesting a stable economic outlook but pressuring the euro's strength in the near term.
Range: The EUR/CHF pair is likely to drift within its recent range as it hovers just below the average, showing no strong trend either upwards or downwards.
What could change it:
• A significant improvement in Eurozone economic growth could strengthen the euro against the franc.
• A reintroduction of negative rates by the SNB due to a strong franc could weaken the Swiss currency, impacting the EUR/CHF rate.
